5 smart things to know about Section 44ADA of Income Tax Act
Posted by: Labdhi Mehta on Jan 22, 2018, 06.30 AM IST
1. Professionals who can make use of this section are from the legal, medical, engineering, architectural, accountancy, tech consultancy, and interior decoration backgrounds.
2. Applicable to resident Indians and to individuals, HUF or partnerships but not a limited liability partnership firm.
3. Total Gross Receipts of assessee should not exceed more than Rs 50 lakh in a financial year to benefit from this section.
4. The income of any person making use of this section is considered to be 50% of the Total Gross Receipts for the year and no further deductions will be allowed to be claimed for the purpose of the profession.
5. The assesse would NOT be required to maintain books of accounts or get the account audited unless he claims that the profi ts are less than 50% of the Total Gross Receipts.